This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Micron, SanDisk and Dr. Memory

Stock quotes in this article: MU, SNDK

NEW YORK ( TheStreet) -- Most of a lifetime ago, in 1971, the Firesign Theater did a phonoplay built around a futuristic, computer-driven society run by a machine called "Dr. Memory."

The play featured a DEC PDP-10 computer, running an artificial intelligence program called Eliza, written in the programming language Lisp. The programmer's struggle then was to get as much done in as little code as possible, to conserve precious memory.

Since then, Moore's Law has made memory anything but precious. Dynamic random access memory (DRAM) chips, once confined only to a computer's internal workings because of their fast access speed, are becoming the primary means of storing data, replacing slower, and more mechanical, hard drives.

Which means these should be boom times for America's real Dr. Memory, Micron (MU).

To an extent, they are. At $13.50 each, shares are near a 10-year high. Micron has completed the purchase of a Japanese rival, Elpida, which Micron's local paper, the Idaho Statesman, calls a "screamin' deal."

The agreement makes Micron a strong No. 2 in memory chips, behind only Samsung, at a time when Moore's Law has demand poised to take off.

It's taking off thanks in part to memory companies like SanDisk (SNDK), which makes products such as a 64 Gbyte Wireless Media Drive that creates its own network, connects to your PC via a USB port, and can stream up to five different videos and connect eight devices for eight hours, on a single electrical charge.

The SanDisk device is just one example of how memory chips are replacing spinning aluminum hard drives, despite their immense capacities. (My son's PC now has more than 1 terabyte -- 1,000 gigabytes -- of storage, and he says it's obsolete.)

Another example of how the market for chip memory is expanding is Intel's (INTC) S3500 Solid State drive, built for cloud computing centers, with capacities of up to 800 Gbytes for less than $1,000.

This may be why analysts at both RBC and Sterne Agee have lately been pounding the table for both of these stocks, even though Micron is up 46% over the last three months and SanDisk is up by nearly one-third so far this year.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,804.71 -238.19 -1.40%
S&P 500 1,946.16 -26.13 -1.32%
NASDAQ 4,422.0850 -71.3050 -1.59%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs